Should You Worry About ASF Group Limited's (ASX:AFA) CEO Pay?
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
The CEO of ASF Group Limited (ASX:AFA) is Mary Yang. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for ASF Group
How Does Mary Yang's Compensation Compare With Similar Sized Companies?
Our data indicates that ASF Group Limited is worth AU$79m, and total annual CEO compensation is AU$261k. (This number is for the twelve months until June 2018). Notably, the salary of AU$258k is the vast majority of the CEO compensation. We looked at a group of companies with market capitalizations under AU$285m, and the median CEO total compensation was AU$354k.
So Mary Yang receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at ASF Group has changed from year to year.
Is ASF Group Limited Growing?
ASF Group Limited has increased its earnings per share (EPS) by an average of 31% a year, over the last three years (using a line of best fit). In the last year, its revenue is down -60%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. Revenue growth is a real positive for growth, but ultimately profits are more important. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has ASF Group Limited Been A Good Investment?
Since shareholders would have lost about 57% over three years, some ASF Group Limited shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
Remuneration for Mary Yang is close enough to the median pay for a CEO of a similar sized company .
We think that the EPS growth is very pleasing, but we cannot say the same about the lacklustre shareholder returns (over the last three years). We'd be surprised if shareholders want to see a pay rise for the CEO, but we'd stop short of calling their pay too generous. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling ASF Group (free visualization of insider trades).
If you want to buy a stock that is better than ASF Group, this free list of high return, low debt companies is a great place to look.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
